Developer says he told inquiry in 1998 of €500,000 claim

Payment allegation: Businessman Tom Gilmartin insisted yesterday he had told the tribunal at an early stage about an alleged…

Payment allegation:Businessman Tom Gilmartin insisted yesterday he had told the tribunal at an early stage about an alleged request for £500,000 from an associate of Taoiseach Bertie Ahern.

Mr Gilmartin has alleged that a close associate of Mr Ahern's, Joe Burke, suggested to him that he make a £500,000 payment in response to support Mr Gilmartin received for his Quarryvale project from Mr Ahern.

Mr Ahern was one of a number of ministers with whom Mr Gilmartin had contact in the late 1980s and early 1990s, in relation to the project.

On Tuesday tribunal counsel Pat Quinn SC, said Mr Gilmartin had first mentioned this allegation in private to the tribunal in 2004, and questioned Mr Gilmartin as to why he had not mentioned it earlier.

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Yesterday morning Mr Gilmartin returned to the topic and said he was certain he had told the tribunal in private in 1998 about the visit to him of Mr Burke. Mr Quinn said the issue was whether he had mentioned the alleged request for money. Mr Gilmartin said there was "no way" he would have told the tribunal about the visit and not tell the full story. "That was the object of it. I'm 100 per cent certain that I did."

He said Mr Burke hadn't made a demand as such but "it was talked around". It was agreed the matter would be returned to at a later stage. Mr Gilmartin was asked about his efforts to progress his project during 1990 and about his securing of £8.5 million in temporary finance from AIB.

He alleged that Cork property developer Owen O'Callaghan manipulated Dublin County Council to frustrate the Quarryvale project, and that O'Callaghan also influenced AIB.

He told the tribunal he was seeking to secure tax designation for the Quarryvale project before selling any percentage of the project to outside investors.

At the time, Mr O'Callaghan had an interest in a site in Neilstown which was zoned for development. Mr Gilmartin believed he would not be able to progress his project if Mr O'Callaghan proceeded with his, so he bought an option over the Neilstown project.

Mr O'Callaghan was to be paid £3.5 million for this option. If Mr Gilmartin failed to proceed with his Quarryvale project, Mr O'Callaghan was to get his Neilstown property back.

Mr Gilmartin said he was "held to ransom" by Mr O'Callaghan. He said the late Liam Lawlor had told him he would get "nowhere" if he didn't do a deal with Mr O'Callaghan.

"Mr O'Callaghan set about buying councillors to ensure I didn't get the zoning," Mr Gilmartin said. Mr Lawlor and councillor Seán Gilbride and others "were on the payroll of Mr O'Callaghan" and seemed to be able to manipulate the council. Frank Dunlop was also involved, he said. He alleged that councillor Colm McGrath also suggested that Mr Gilmartin give him money.

He said information he gave to AIB made its way to Mr O'Callaghan. He said there was "no question but the bank was thwarting me".

By August 1990 he was due to repay the bank but had not secured zoning or designation, and was having difficulty securing an outside investor.

He also owed money to Mr O'Callaghan as part of the Neilstown option. Mr Gilmartin continues his evidence today.